Fuels Industry UK Calls for Government Policy Action Following Publication of Project Willow
London 19 March 2025
Today’s publication of Project Willow underscores the vital role that liquid fuels will continue to play as part of the UK’s transition to a lower-carbon future, with sustainable aviation fuel (SAF) and other lower-carbon fuels highlighted as projects that could be taken forward at the Grangemouth site. However, the investment required to ensure a resilient fuel supply chain and grow the production of lower carbon fuels will only materialise if the UK takes action and offers a globally competitive operating environment.
The UK’s refining sector remains a crucial component of the national energy mix. It is a foundational sector of the economy supplying essential fuels for transport, industry, and heating while supporting thousands of skilled jobs. Yet, the high-cost manufacturing environment in the UK places domestic refineries at a severe competitive disadvantage against international counterparts.
To address the UK’s competitive disadvantage, Fuels Industry UK urges governments to:
- Make clear to investors that government recognises the ongoing importance of liquid fuels in the UK’s energy mix.
- Take steps to address the high cost of energy and carbon pricing policies that hamper domestic fuel manufacturing.
- Provide a clear and stable regulatory framework that encourages investment in UK-based refining and lower-carbon fuel production such as through support for hydrogen and carbon capture which are essential for refinery and wider industrial decarbonisation.
Elizabeth de Jong, Chief Executive Officer of Fuels Industry UK said “The UK cannot afford to see another refinery closure. Decisive action is needed now if the UK is to retain a sustainable, competitive, and resilient fuels sector to power our country into the future.”
ENDS
Notes to Editors:
- Fuels Industry UK represents eight oil refining and marketing companies that operate the major oil refineries in the UK and source over 93% of the transport fuels used. Fuels Industry UK members also own around 1,250 of the UK's 8,000+ filling stations. Fuels Industry UK’s associate members are made up of a wide range of companies - from heating fuel supply and LNG imports, renewable and sustainable fuel producers, to terminals and pipelines - all providing a range of essential services across the industry.
- Project Willow has been delivered by EY to assess a range of proposals to deliver a viable long-term future for the Grangemouth refinery site, as part of a joint-funded £1.5 million feasibility study. Fuels Industry UK shared views with the EY project team but has not directly been otherwise involved in its production nor had early access to the output.
Contact:
Jamie Baker, Director of External Relations, 0207 269 7605